Whether you’re a Brazillian entrepreneur looking for a new base, or you’re based in a country on the other side of the world, Brazil is an economy to get excited about. The municipality of São Paulo, the country’s most populous city, is a key destination not only for Brazillian firms but companies around the world, with many flocking to the region to do business and thrive.

Boasting huge industries and the endless movement of entrepreneurs from all over the world, São Paulo is one of the most diverse and innovative cities in the world. In this article, we take a closer look at the market and explore why you should incorporate there.

Access to venture capital

Although businesses in Brazil and São Paulo have been able to secure equity for their firms for a number of years, the number of Western and United States venture capital firms in São Paulo is on the rise. Indeed, many banks and private equity firms have been establishing themselves in the country in order to take advantage of its growing startup scene. 

Brazil is an attractive option for venture capitalists because of the country’s economy and currency. From a recent foreign exchange peak of US$0.63 per Brazillian Real back in 2008, the currency now works out at around US$0.27 per Brazillian Real. This makes São Paulo an affordable investment hub for venture capitalists. Indeed, American firms can get more bang for their buck and make a huge impression in the country, much more so in São Paulo than in their home countries.

As an entrepreneur looking to establish their business and secure capital investment for your growth, São Paulo offers access to thousands of schemes and an open door to some of the world’s most prolific investors, which makes setting up a LATAM business attractive.

São Paulo is responsible for a third of Brazil’s GDP.

Financial hub of Brazil

Brazil has the world’s eighth largest economy by GDP, and the region of São Paulo is responsible for a third of that. São Paulo competes with countries such as Poland and Belgium in terms of economic performance and is, therefore, the natural home of financial services in Brazil. With some of the world’s biggest banks establishing a Latin American base in São Paulo, it’s easy to apply for business loans and capital, and connect with some truly influential figures in the world of banking. That’s not only great news for businesses looking to set up in the financial technology sector, but businesses across virtually every sector in need of loans.

According to one report, 63% of all companies that operate in Brazil have a São Paulo base, which demonstrates the pull of the region and its appeal over other states. In simple terms, if you want to be considered a big business and work in the same field as some of the world’s most renowned names in finance, São Paulo is the ideal starting point for your Brazillian expansion.

Advantages of a large population

As of 2019, São Paulo is home to more than 12,100,000 people. The city now holds the title of being the most populous city in Brazil, and the Western and the Southern Hemispheres. It is now the eleventh most populous city on the planet. São Paulo’s urban agglomeration, the Macrometropolis, is also home to more than 33 million people across Campinas, Santos, Sorocaba, and the Paraíba Valley.

The most obvious advantages of operating in such a populous city are that you can enjoy access to a huge potential pool of clients and customers, as well as an endless stream of new talent as your organization grows and develops. What’s more, despite relatively low levels of tourism in the city, São Paulo is home to some stunning architecture, restaurants, and nightlife, which offer unique opportunities for businesses entering into the tourism and services sectors. This setting enables businesses to pull in talent traveling from overseas, if so desired.

Strong hospitality industry

When incorporating a company in Brazil or indeed in any other country in the world, you’ll likely want to fly out from time to time or bring employees from your home headquarters to visit, to provide their expertise and assistance. Because São Paulo is such a popular choice for many business travelers and entrepreneurs, the city has a wide range of hotels and hospitality offerings around its central transport hubs. The top-class hospitality industry offers an abundance of services and features that you’d expect at home, making travel and short-term stays comfortable for executives and employees on the move.

Another benefit of São Paulo is that it can compete on price. If you were to establish a firm in the country and wanted to return to your home country, you’d be able to visit São Paulo as and when required with affordable accommodation. One night in the Hilton São Paulo Morumbi would set you back US$100, for example, whereas a comparable room in London costs US$300.

Cultures collide

São Paulo startup culture

São Paulo has a diverse range of talent to bring into your business, and an inspiring startup culture.

Part of the reason for this success is because it is home to people from all walks of life – people of different cultures, ethnic backgrounds, and nationalities. When you’re forming a business in São Paulo, you’ll be able to take advantage of this and hire a diverse team that can offer you different opinions and views, fill skills gaps and shortages, and become a truly multicultural workforce.

This not only allows you to gain a better understanding of different cultures, but it inspires creativity, allowing you to target customers from all corners of the globe. This coveted capability contributes to your competitiveness and helps your business deliver a better level of service to your customers.

Startup ecosystem

Finally, it is important to mention São Paulo’s startup ecosystem. Whether you’re expanding an already established business or you’restarting with a new idea from scratch, it offers a comprehensive support and guidance for new businesses. The city hosts conferences and events, there are startup accelerators on offer, and the country’s entrepreneurial spirit has opened doors for new firms, all of whom can work together to support one another’s goals.

By working in a city where there are startup success stories around every corner, you’ll not only feel inspired to achieve and expand, but you can benefit from the expertise of others.

Let Biz Latin Hub Help

If you are considering São Paulo for your next business venture, whether as a Brazillian entrepreneur or as a business looking for new international opportunities post-Brexit, you can depend on the experts at Biz Latin Hub to enable your market entry and expansion. We offer everything from commercial representation through to legal services and recruitment, so do not hesitate to get in touch today to arrange a free consultation with a local specialist.

Send an email on [email protected], and trust Biz Latin Hub to become your local back-office partner as you grow and expand in São Paulo and across Latin America. For more information, check out our short video below.